The Daily Climb-Wednesday, Nov. 16th, 2011

Wednesday, Nov. 16th, 2011 – A quick look at the headlines and my email notifications tells me that the playing field may be changing a little bit. China’a announcement that 2012 silver exports will be 5% lower is interesting. My question is, does that include silver content in manufactured goods? If not, and the decrease is all in bullion, That could put a dent in an already tight supply. Outside of that little detail, we have the usual saber rattling and political posturing. There’s enough there to keep us from getting bored.

It’s like living in the movie, “Robocop”


While all of this debate is going on, just remember that paper speculation makes your brain over easy in the skillet. Do you want beans or fries with that?


A central bank’s greatest fear is that the general population would cease to transact in it’s currency. Their influence and control would go to zero. The central banks work very hard to keep nations addicted.


The most effective form of slavery is that in which the slaves believe themselves to be free. So it is, in the United States.


When E-470 was completed around Denver, I asked one of my friends what it meant in the Bible when a city was encircled. Simple answer. It’s under siege. The original purpose of the Interstate highway system was to move troops around the country and deploy them. That is still the purpose.


If Europe follows the Fed’s bad example and prints a blizzard of currency, Hell is coming to breakfast. For months, there have been questions about where the tipping point in global hyperinflation is going to be. It could be that Europe pushes the economy over the edge and past the point of no return. Perhaps the Fed will see an opening to expand the debt business and join in. Regardless, increasing the currency supply is playing with fire, and paper burns.


A banking crisis is like watching pro wrestling. Adversaries may actually be friends, play-acting to deceive the simple. A good guy this week may be the bad guy, next week. Watch out for the foreign object, hidden in the waistband of the tights.


When I first heard about Occupy Wall Street, I said that civil disorder would result in a military response. I wasn’t surprised when I saw the statement that the movement needed a “Kent State” incident. The descent into madness continues. I see common behavior in today’s civil disturbances and events in 1920′s Germany.


The Mexican drug cartels had a lot of help. The CIA has been up to it’s eyeballs in the drug trade, since the agency’s inception. Occasionally, we get glimpses of the dark side of U. S. foreign policy. When Noriega got too big for his britches and stepped on the wrong toes, U. S. troops were sent to fetch him. Immediately aster U. S. troops were settled in Afganistan, opium production resumed, under the guard of said troops. Bill Clinton’s relationship with the CIA in Mena, AR was quite profitable.


You’re on one of my favorite subjects. I couldn’t have written it better, myself. I’m re-posting this one. I know that my friend, Michael Corbin ( A Closer Look radio program) would have liked this, a lot.


It has always been so. In 1929, on the night of the stock market crash, Winston Churchill held a party for his elite friends, to celebrate the event. At the time, it was the largest wealth transfer in the history of the world.


This will be another under-funded and over-mandated fiasco. Socialized medicine is about consolidation of power and has nothing to do with better healthcare. Washington is addicted to the power of Ponzi.


There is one sure way to beat the scam. Pull your money out of the game for a week. That would just make my day, seeing no demand for oil at it’s present price levels. Let’s see how the PPT handles being told to bite the wall.


We’ll get to see how “market monetarism” works for everybody. If you remember Nikita Krushchev, “monetizing” the debt should give everyone a shoe-banging good time. I particularly enjoyed the revisionist history in this post. The production boom in supplying WW II ended the Great Depression, not any action by the Fed.  Monetary policy prolonged the Great Depression. Banks did what they do to cover their tracks. They instigate wars. They follow up wars with insane inflation. Remember the failure of wage and price controls. Remember what Christina Romer said, when you can’t get a fast food meal deal for less than $12.


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